Thinking about switching brokers? You're not alone. Investors often look for platforms that better suit their evolving needs. If you're considering a move from Robinhood to TD Ameritrade and want to bring your investments along, this guide will walk you through the transfer process.
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Why Should I Transfer Stocks from Robinhood to TD Ameritrade?
Trading with Robinhood offers many benefits. However, it is obvious in many cases that TD Ameritrade is the greater choice for almost everyone.
Let's take a look at how they compare in several areas, and then you can determine whether you should switch from Robinhood to TD Ameritrade.
Great Mobile and Trading Experience
When it comes to experience on mobile applications TD Ameritrade surely has the upper hand.
Robinhood is ideal for people who prefer a basic trading interface. It's especially beneficial if you're a complete novice.
TD Ameritrade, on the other hand, offers two separate apps: "regular" and "thinkorswim". The first is for regular traders, while the second is for those who are more experienced and prefer a little more information.
Easy to Use Desktop/Web App
Although Robinhood has a user-friendly interface, I believe that this is a disadvantage. Many customization choices are unavailable, and orders cannot be staged.
TD Ameritrade, on the other hand, allows you to tailor practically every aspect of your order, from the order type to the quantity and size. Plus, if you're a non-professional, you get Level II quotations for free, which is a hard deal to pass up.
Securities
When it comes to the securities that each broker has to offer, it all depends on what you're looking for. There is no apparent winner in this contest.
For example, Robinhood offers a wide range of cryptocurrencies, whereas TD Ameritrade exclusively offers Bitcoin futures trading.
TD Ameritrade, on the other hand, provides access to a wide range of instruments, including bonds, futures/commodities, future options, Forex, and equities on overseas exchanges, whereas Robinhood does not.
Research Tools
When comparing the two brokers based on research tools, TD Ameritrade emerges as the clear winner.
TD Ameritrade has a screener, an idea generator, a calculator, and professional research reports, which Robinhood lacks.
Educational Content
Robinhood provides straightforward content for novice investors and traders, but you'll have a hard time discovering what you're looking for. This is because all of their articles are arranged chronologically and there is no search function. They offer a podcast with important suggestions in addition to their articles, but that is the extent of their educational content.
To help you educate yourself, TD Ameritrade has a large library of articles, glossaries, webinars, and videos. As a result, having everything you require in one location is really convenient.
How to Transfer Stocks & Assets from Robinhood to TD Ameritrade Step by Step
TD Ameritrade is a full-service broker that has been in operation for decades. They provide a variety of account options, including retirement accounts. Robinhood, on the other hand, does not currently provide retirement accounts.
Because of this, you may want to transfer your stocks from Robinhood to TD Ameritrade. Others might have a different reason for wanting to do so.
Whatever your reason may be, if you want to transfer your stocks and assets from Robinhood to TD Ameritrade, there are 3 simple steps you need to follow which are:
- Gather information from Robinhood
- Open a TD Ameritrade account
- Completing the Transfer from Robinhood to TD Ameritrade
1. Gather Information from Robinhood
You'll need to gather certain information from Robinhood to transfer stocks out of the platform. Your Robinhood account number is the most crucial information you need to complete this transfer. You can find the account number on your Robinhood statement, and TD Ameritrade will most likely request a copy of it.
Here's how to find your Robinhood account number to Transfer Stocks to TD Ameritrade:
- Click on the "Account" icon in the bottom right corner of your screen
- Tap on "Investing"
- Your account number will be displayed at the top of your screen
To continue with your transfer, you may need to refer to a DTC number. The DTC number for Robinhood is 6769.
Robinhood will charge you $75 when you transfer stocks or cash from Robinhood to an outside brokerage like TD Ameritrade. This fee applies whether you are doing a partial or full transfer.
This fee will be deducted from your Robinhood account's available cash balance before the transfer process begins.
2. Open a TD Ameritrade Account
You will obviously need a TD Ameritrade account to receive your stocks and assets from Robinhood. To open a TD Ameritrade account, all you need to do is go to the TD Ameritrade Website, click on "Open new account" and follow the steps providing all the information to open your account. There is no initial deposit required from you to open the account.
3. Initiating and Completing the Transfer from Robinhood to TD Ameritrade
Once you've opened the account, you can transfer stocks, options, ETFs, and other assets from another brokerage to your TD Ameritrade account.
You cannot, however, transfer cryptocurrencies out of Robinhood. If you have any, you should convert them to cash first. This money will be deposited into your new TD Ameritrade account. Keep in mind that this may result in a capital gain, which you will be responsible for paying taxes on.
Here's how you initiate the transfer from Robinhood to TD Ameritrade
- Login to your TD Ameritrade account via their mobile app
- Go to "My Account" and from there, select "Account Transfer"
- Follow and complete all the prompts necessary for the transfer.
- Make sure the name on your Robinhood account matches the name(s) on your receiving TD Ameritrade account for the transfer to be successful.
- Once you've initiated the transfer, give it up to 7 working days to complete
CHECK ALSO: Why is My Withdrawable Cash $0 on Robinhood?
How Long Does it Take to Transfer Stocks from Robinhood to TD Ameritrade?
After you open a TD Ameritrade account and initiate the transfer, you should expect to wait a week for it to be completed.
It may take up to 2 weeks in some cases, but telling how long such a transfer will take is kind of difficult.
Because there may be a variety of factors that influence the time it takes for the transfer to be processed, it's a good idea to contact Robinhood and inquire.
Final Thoughts
While Robinhood provides access to cryptocurrency and has a user-friendly mobile app, switching to TD Ameritrade has several other advantages.
So it all boils down to what you value the most. TD Ameritrade is a no-brainer if you need a lot of training material, prefer a more complex trading platform, and want to trade a wide range of assets.
The most crucial thing to remember is that you will have to pay $75 to Robinhood to complete the transfer. Of course, after the transfer is complete, you can always ask TD Ameritrade if they would cover this amount.
Moving from Robinhood to TD Ameritrade isn't always a good option, but it appears to be for some, in most cases. Although Robinhood's trading app is more user-friendly, there are many more advantages when using TD Ameritrade. However, as I mentioned earlier, the final choice remains yours.